What would you like to do?
Can you find out if your tax refund will be taken for a past debt i.e student loans before you file?
Answer Typically a notice via mail is issued prior to the filing period alerting the student loan or child support debtor that their refund may be taken in whole or part to repay these obligations. 1-800-304-3107 is the best way to find out...it's automated.
42 people found this useful
Was this answer useful?
Thanks for the feedback!
Can the Treasury Dept offset a joint married tax refund if it is your default student loan and not the wifes. Your debt was pre-marriage?
Yes. If you are worried about it, I'd file Married Filing Separately until you get the student loan issues cleared up.
Can you stop your tax refund from being taken to pay student loan debt if you made very little money last year?
Your question isn't really a tax one, but an educational loan one. The IRS doesn't really care who it gives the refund to, as long as it is a legal party to receive it. It has… no dog in this fight if you will. What you define as poor and what others, including the government does is probably disparet. Generally, if you made more than 8K, whatever that amount is is able to be used to pay government type debts. Student loans are in a special collection catagory, and even harder to get them to stop collection action on than most debts. I would suggest, as any refund your getting is only because you allowed too much to be withheld from your pay, that you provide your employer a new W-4 and make sure the amount that gets withheld more closely reflects your actual liability...that way next year you won't have (at least much) of another refund to worry about. Of course, to collect they could, and may, just garnish your wages sooner or later.
I believe that any tax refund to which you think you may be entitled was diverted to pay down the debt of your student loan obligations. Your federal income tax will be applie…d to any federal student loans that are in default. The only way to stop garnishment is to enter into a repayment agreement with your loan holder and make payments for 6 months. Your state income tax is not garnished. The refund is applied to the interest owed so your principal balance never actually decreases. You can change your W2 status so that less taxes are taken from your paycheck. But be careful to ensure that enough taxes are taken out to pay your tax deduction or you may have to pay at tax time. If you're single with a standard deduction you usually pay $2,500 in taxes (check IRS tax tables). Once you have paid that much in taxes, change your W2 status so you take home more pay. Then you won't get a tax refund to be garnished. you got your money as pay.
You won't receive it. It will be forwarded to Dept of education
If my debt is only in my name and I file chapter 7 in Georgia would my refund be taken if I file my tax return jointly with my husband?
If you filed a Chapter 7 and it has been discharged your tax refund will not be taken. It will only be taken if you have filed a Chapter 13 and that is entirely up to the Trus…tee.
You can find out if you have a student loan tax refund lien bycalling the IRS. The phone number is (800) 913-6050.
If you are back payments, been getting (or had gotten) nastygrams about it, and the loan is a Gov't insured or granted one....it will more than likely happen. Computer systems… screw up and miss..... sometimes .
Federally guaranteed or insured loans, yes.
If they are under 180 days late, you should be ok. If over 180 days delinquent, then you are in Default and may have your tax refund applied to your student loan balance. If… you need help getting out of default, or getting a garnishment lifted, then contact Default Management Services, Inc. for help. You can Google the name for a phone #. Ask for Doug, he is knowledgeable.
For delinquent gov't insured or guaranteed loans.
The Department of Treasury's Financial Management Service (FMS), which issues IRS tax refunds, has been authorized by Congress to conduct the Treasury Offset Program. Through …this program, your refund or overpayment may be reduced by FMS and offset to pay any past--due child support, Federal agency non--tax debts, or state income tax obligations. For additional information, FMS can be reached at 800--304--3107. Go to the IRS gov website and use the search box for Topic 203
In the USA, if your Federal Student Loans are in default, then your original lender was paid 97% of your loan value by a Federal Guarantee Agency. Guarantee Agencies are basic…ally insurance companies. When your lender was paid off, the Guarantee Agency took ownership of your loans. Guarantee Agencies have the right by law to keep any Federal or State Income Tax return money that is owed to you. They also have the right to garnish any wages and to garnish Social Security benefits. If you need help getting out of default and getting off of the tax offset list, click on my profile, StudentLoaner, below.
Very possible if you are in FMS offset of refund tax program. Go to the IRS gov web site and in the middle of page where the picture is they have some page numbers 1 to 5 choo…se page number 4 for the below information Help Is Available New options, outreach assists those facing financial difficulties. For Unemployed Taxpayers Web page has info on topics for those facing financial difficulties. What If...? Having financial problems? Here are answers to a few tough questions. IRS Outlines Additional Steps to Assist Unemployed Taxpayers and Others Tax Center to Assist Unemployed Taxpayers The "What Ifs" of an Economic Downturn Click on the below related link
Tax Refunds and Returns There is no specific protection for tax refunds in bankruptcy. As such, the "wild card" exemption* is used to try to protect these funds as much as p…ossible. Further, any portion of your tax refund that pertains to the "earned income credit" is also fully protect and yours to keep. In a Chapter 7 Bankruptcy, you may lose all or part of your tax refund due for the tax year in which you filed your bankruptcy. For example, if you file for bankruptcy in 2009, your Trustee may be entitled to all or part of your 2009 refund, which is due from the tax return that you will be file in 2010. If you file for bankruptcy today, you must provide copies of your tax returns for the years 2008, 2007, 2006, 2005, and you may have to provide a copy of your 2009 tax return when it is filed, to the Trustee. In a Chapter 13 Bankruptcy, you must also provide copies of your tax returns to your Trustee during the term of your Chapter 13 Bankruptcy. You will generally lose tax refunds during the entire term of your Chapter 13, not including any amount that can be protected by the "wild card". ------- * The wildcard exemption is $1,000 per person. It allows you to retain up to $1,000 of assets (cash, accounts, property â¦) that is not otherwise protected when you file for bankruptcy.
According to me it take about 2 to 3 weeks.
I have an IRS lien on my refund for student loan debt and am married. Should we file married filing separate to save my wife's return from garnishment?
That's not necessary, but it could make things easier dependingon your situation. There are some things you couldn't claim on yourreturn using the married filing separate (MFS…) filing status. Ifyou don't have any children and you don't have any credits thatwould be affected by the MFS status, then it would probably beeasier to file separately. . If you do have children or credits you'd be missing out on andwant to file joint, then you can do that and the non-debtor canfile the form 8379 Injured Spouse Allocation. This form allows thenon-debtor to show what portion of the income on the return istheirs and that percentage of the refund will also be hers and noteligible for your debts. They may take the entire refund even ifyou submit the form with the return, but just send it in again inresponse to the notice or go down to your local IRS office. Thiswill split the refund according to her income percentage. Itdoesn't matter who paid more tax, just who has what percentage ofincome in determining the injured spouse claim. . For example, let's pretend that you make $25,000 and only have$1,000 withheld for federal taxes. Let's pretend that your spousealso makes $25,000 and has $1,600 withheld for federal taxes. Thenlet's say that you file jointly and since you have a kid, your nettax liability is only $800, so you're claiming a refund of $1,800.The injured spouse claim would be for 50% of the refund ($800)because each of you has 50% of the income on the joint tax return.It can be the more favorable option if MFS would disallow you fromclaiming certain credits. If either decides to adjust theirwithholding down, remember to make sure you're having enoughwithheld to cover your taxes if you don't want to owe at the end ofthe year.